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China Electronics Huada Technology Company (0085) Fair Value & Analysis

Technology · HK · Market cap HK$2.2B

CE China Electronics Huada Technology Company 0085 · HK
PriceHK$0.9500
Fair ValueHK$2.07
Upside+118.2%
Quality57/100
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Mixed Growth
Solidly profitable · 10.8% net margin
Low debt · generates free cash flow
3.50% dividend yield
Ranks above peers (13/14)
Narrow moat 41/100
Evidence: High Range HK$1.55 – HK$2.59 Share as image

Fair value as of: Aug 2, 2026

From 26 valuation models · updated 9 days ago

Fair value updated Aug 2, 2026, revised from HK$2.32 to HK$2.07 (−10.6%) since Jul 1, 2026. Share price −10.4% over the past month.

A solid business, screening 118% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (HK$1.55). The market is more pessimistic than our downside scenario.
  • Solid quality (57/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

HK$1.83 HK$0.3990 Fair Value HK$2.07 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 2, 2026.

How to read this chart

60‑month range HK$0.3990 – HK$1.83 · fair‑value band HK$1.55 – HK$2.59 · the HK$0.9500 price screens below the HK$2.07 fair value. Dashed = 300-day average. As of Aug 2, 2026.

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Analysis

China Electronics Huada Technology Company (0085) currently trades at HK$0.9500, while our model-based Fair Value estimate is HK$2.07, implying the stock looks roughly 118.2% undervalued today. The Quality Score stands at 57/100 (solid quality), in the Technology sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, China Electronics Huada Technology Company generated revenue of HK$2.2B at a net margin of 10.8%. Revenue grew 8.1% year over year. It earns a return on equity of 9.4%. The balance sheet holds a net cash position of HK$312M. Fundamentals as of Aug 2, 2026

Our scenario range runs from HK$1.55 (bear case) to HK$2.59 (bull case); at HK$0.9500, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 50% below its 52-week high, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -67% fair-value upside, at 118%, 0085 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF HK$2.18 HK$3.87 HK$6.60 80
Residual Income HK$1.08 HK$1.17 HK$1.46 76
Rev-Margin DCF HK$1.95 HK$3.21 HK$5.85 74
All 26 models by family
DCF Models
FCF DCF HK$2.30 HK$3.38 HK$6.74 38
Owner Earnings HK$2.36 HK$4.86 HK$9.91 31
5Y Revenue Exit HK$1.80 HK$2.85 HK$5.03 39
5Y EBITDA Exit HK$2.14 HK$3.53 HK$6.26 41
5Y P/E Exit HK$2.16 HK$4.38 HK$7.40 38
10Y Revenue Exit HK$1.92 HK$3.74 HK$4.86 36
10Y EBITDA Exit HK$2.22 HK$4.45 HK$8.32 37
10Y P/E Exit HK$2.23 HK$4.49 HK$8.19 35
Earnings-Based
Graham-Dodd HK$0.7900 HK$5.50 HK$7.72 54
Lynch FV HK$2.84 HK$4.06 HK$5.28 50
PEG = 1.0 HK$2.84 HK$4.06 HK$5.28 46
EPV HK$1.36 HK$1.52 HK$1.67 59
Dividend Discount
Gordon GGM HK$0.7900 HK$1.57 HK$2.38 70
DDM Multi-Stage HK$0.7900 HK$1.36 HK$1.66 61
Multiples
P/E Multiple HK$1.74 HK$2.32 HK$2.90 63
P/S Multiple HK$1.48 HK$1.97 HK$2.46 58
P/B Multiple HK$1.48 HK$1.97 HK$2.46 55
EV/EBIT HK$2.04 HK$2.62 HK$3.20 53
EV/EBITDA HK$2.02 HK$2.59 HK$3.16 54
EV/Revenue HK$1.47 HK$1.98 HK$2.48 43
Asset-Based
NCAV (Graham) HK$0.6300 HK$0.8400 HK$1.26 50
Growth DCF
Growth DCF HK$2.18 HK$3.87 HK$6.60 80
Rev-Margin DCF HK$1.95 HK$3.21 HK$5.85 74
Economic Profit
Residual Income HK$1.08 HK$1.17 HK$1.46 76
ROIC Compounder HK$1.48 HK$1.93 HK$2.35 72
Growth Earnings
Growth-Adj P/E HK$3.66 HK$5.23 HK$6.80 68

Widest divergence: Growth Earnings (HK$5.23) versus Asset-Based (HK$0.8400). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$2.2B
Revenue growth (YoY) +8.1%
Net margin 10.8%
Return on equity 9.4%
Free cash flow HK$255M FY2025
P/E ratio 8.8
More key figures
Operating margin 8.8%
EPS (TTM) HK$0.0700
Dividend yield 3.5%
EPS growth (YoY) -65.2%
Net cash HK$312M FY2025

Figures from reported company fundamentals · as of Aug 2, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 57/100

Of which business quality 58 · Market factors (momentum, volatility) 26

Profitability 43
Margins and returns on capital today
Quality Growth 11
Are margins and returns improving?
Cashflow 61
Earnings quality: real cash, not paper profit
Fin. Strength 79
Balance sheet, leverage, solvency risk
Investment 72
Disciplined investing over empire-building
Low Volatility 72
Calm price path (market factor)
Momentum 10
Price trend over the last 3–12 months (market factor)
52W Momentum 0
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

China Electronics Huada Technology Company Limited, an investment holding company, engages in the design and sale of integrated circuit chips in the People's Republic of China.

Full company description

China Electronics Huada Technology Company Limited, an investment holding company, engages in the design and sale of integrated circuit chips in the People's Republic of China. It provides smart cards and secure element chip products, and application solutions for use in FinTech, network communication, Internet of Things, internet of vehicles, intelligent transportation, and smart manufacturing industries. The company is based in Wan Chai, Hong Kong. China Electronics Huada Technology Company Limited is a subsidiary of Huada Semiconductor Co., Ltd.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Electronics Huada Technology Company reported revenue of HK$2.2B in FY2025 versus HK$1.7B in FY2021, a compound +6.7%/yr. Reported net income was HK$235M in FY2025, compounding +17.0%/yr from FY2021.

Growth Quality 55/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
HK$2.2B
Latest YoY
−7.1%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−4.2%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.5%
Avg. growth/yr (25Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.1%
Revenue +6.7%/yr
FY21 HK$1.7B
FY22 HK$2.5B
FY23 HK$3.0B
FY24 HK$2.3B
FY25 HK$2.2B
Net income +17.0%/yr
FY21 HK$125M
FY22 HK$531M
FY23 HK$686M
FY24 HK$588M
FY25 HK$235M
Character of growth · EPS growth decomposed (2014-2025) +9.4 % p.a.
Revenue per share +5.6 pp

of which total revenue +6.1 pp · buybacks/dilution −0.5 pp

EBIT margin +7.1 pp
Tax rate +0.6 pp
Residual (interest, one-offs) −3.9 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "China Electronics Huada Technology Company Fair Value". https://www.fairvalue-calculator.com/stock/0085

Peer Group

Semiconductors · 318 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 57 · Above median
Fair Value upside +118% · Top 25%
Return on equity (TTM) 9% · Above median
Return on assets 4% · Above median
Net margin (TTM) 11% · Above median
Operating margin (TTM) 9% · Above median
Revenue growth 8% · Below median
Dividend yield (TTM) 3.5% · Top 25%

Valuation Multiples vs Semiconductors median · lower = cheaper

P/E (TTM) 8.8× · Cheaper than 75% of peers
P/B 0.84× · Cheaper than 75% of peers
P/S (TTM) 0.99× · Cheaper than 75% of peers
P/FCF 1.1× · Cheaper than median
EV/EBITDA 6.2× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 0
FUTURE 41 · sector 60
PAST 38 · sector 25
HEALTH 100 · sector 97
DIVIDEND 70 · sector 22

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Semiconductors stocks, each showing price versus our Fair Value estimate (as of Aug 2, 2026).

Stock Price Fair Value vs Fair Value
NVIDIA Corporation NVDA $211.80 $96.91 -54%
Taiwan Semiconductor Manufacturing Company TSM $418.47 $208.16 -50%
Broadcom Inc 1AVGO €367.75 €121.25 -67%
Micron Technology, Inc 1MU €784.90 €185.67 -76%
SK hynix Inc 000660 2,082,000 KRW 1,109,311 KRW -47%
Advanced Micro Devices, Inc 1AMD €425.20 €56.33 -87%
Intel Corporation INTC C$68.40 C$9.82 -86%
Texas Instruments Incorporated TXN $311.46 $59.75 -81%
MediaTek Inc 2454 3,740 TWD 1,163 TWD -69%
SK Square Co 402340 1,212,000 KRW 868,000 KRW -28%

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Frequently asked questions

Is China Electronics Huada Technology Company (0085) overvalued or undervalued?
As of Aug 2, 2026, our model estimates a fair value of HK$2.07 versus a price of HK$0.9500, about +118% (undervalued).
What is the fair value of 0085?
Our model-based fair value for China Electronics Huada Technology Company is HK$2.07 (as of Aug 2, 2026), built from audited fundamentals. The current price is HK$0.9500.
What is the quality score of 0085?
China Electronics Huada Technology Company has a Quality Score of 57/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of China Electronics Huada Technology Company (0085)?
China Electronics Huada Technology Company reported trailing-twelve-month revenue of about HK$2.2B (latest available figure, as of Aug 2, 2026).
What is the net profit margin of 0085?
The net profit margin of China Electronics Huada Technology Company is about 10.8%, meaning it keeps roughly 10.8% of revenue as net income. Based on the latest reported figures.
Does China Electronics Huada Technology Company pay a dividend?
China Electronics Huada Technology Company currently shows a dividend yield of about 3.50% relative to its recent price (as of Aug 2, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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